Research Paper no. 3 2002-03
Australia's Foreign Debt
Tony Kryger
Statistics Group
3 March 2003
Contents
Major Issues
Introduction
Level of Foreign Debt
As a Percentage of Gross Domestic Product
Interest Liability
As a Percentage of Gross Domestic Product
Historical Perspective
Interest as a Percentage of Gross Domestic
Product
Composition of Gross Foreign Debt by
Institutional Sector
Composition of Gross Foreign Debt by
Currency
Composition of Gross Foreign Debt by
Country
Composition of Gross Foreign Debt by
Maturity
Components of Increase in Net Foreign
Debt
Composition of Net Foreign Investment-Debt and
Equities
Endnotes
List of Tables
Table 1. Gross and Net Foreign Debt,
1976-2002
Table 2. Interest on Foreign Debt, 1959-60 to
2001-02
Table 3. Historical Data, 1900-01 to
2001-02
Table 4. Composition of Gross Foreign
Debt-Institutional Sector, 1980-2002
Table 5. Composition of Gross Foreign Debt-Currency,
1981-2002
Table 6. Composition of Gross Foreign Debt-Country,
1992-2001
Table 7. Composition of Gross Foreign Debt-Residual
Maturity of Debt Outstanding, 1997-2002
Table 8. Components of Increase in Net Foreign Debt,
1988-89 to 2001-02
Table 9. Net Foreign Investment In Australia-Levels,
1980-2002
Major Issues
-
- Australia has always been a net recipient of overseas
funds.
-
- After being fairly low and stable for a number of years,
Australia's foreign debt grew rapidly after 1981. Between 1981 and
2002, the level of foreign debt increased from $19 billion to $527
billion in gross terms and from $9 billion to $330 billion in net
terms, i.e. after deducting Australia's reserve assets and lending
abroad. (Table 1.)
-
- The foreign debt to gross domestic product (GDP) ratio gives an
indication of what has been happening to debt relative to the size
of the economy. Between 1981 and 2002, Australia's gross foreign
debt increased from 13 to 74 per cent of GDP, while net foreign
debt increased from 6 to 46 per cent. (Table 1.)
-
- The ratio of Australia's interest payments on gross foreign
debt to GDP averaged around half of one per cent through the 1960s
and most of the 1970s. It then increased rapidly to peak at 4.0 per
cent in 1990-91, falling to 2.6 per cent in 2001-02. Therefore, 2.6
per cent of the value of all goods and services produced within
Australia in 2001-02 was required to meet the interest commitment
on our gross foreign debt in that year. (Table 2.)
-
- In 2002, Australia's gross foreign debt as a proportion of GDP
was at its second highest level in more than 60 years. A higher
level of debt was recorded in 2001 but before this, the only times
when debt as a proportion of GDP was higher, were the periods 1901
to 1906 and 1931 to 1937. (Tables 1 and 3.)
-
- For all of the period from the mid-1940s through to the early
1980s, the ratio of Australia's interest payments on gross foreign
debt to the value of its exports of goods and services (or debt
service ratio) was below 6 per cent. It increased steadily
thereafter and by 1991 had climbed to 24 per cent, falling to 12
per cent in 2002. (Table 3.)
-
- Over the past couple of decades, the general government and
Reserve Bank's share of gross foreign debt has fallen sharply, as
has the share held by private non-financial corporations. Whereas
the latter were for many years the largest holders of debt, that
position has long since been overtaken by private financial
corporations which in 2001 held 69 per cent of gross foreign debt.
(Table 4.)
-
- The proportion of debt denominated in Australian dollars
increased substantially from 12 per cent in 1981 to 45 per cent in
1997, falling to 33 per cent in 2002. The greater the proportion of
debt denominated in Australian dollars, the lower the risk that a
fall in the $A will increase the level of debt. (Table 5.)
-
- The most important creditor countries for Australia have
consistently been the United States, United Kingdom and Japan. The
relative importance of these countries has changed over time so
that whereas Japan was the most important creditor country in the
early 1990s, that position has now gone to the United States. In
2001, the United States accounted for 26 per cent of Australia's
gross foreign debt. (Table 6.)
-
- The turnover of foreign debt is rapid with most loans
outstanding due within a very short period. In 2002, 55 per cent of
loans were due within a year and 40 per cent were due within 90
days. (Table 7.)
-
- Exchange rate movements have at times had a significant impact
on the level of debt. For example, well over half the increase in
net foreign debt that occurred between June 2000 and June 2001 was
due to the decline in the value of the Australian dollar that
occurred over this time. (Table 8.)
For many years, foreign investment in Australia
has been predominantly in the form of borrowed funds from overseas.
This was not always the case and whereas debt accounted for 86 per
cent of net foreign investment in 2002, the corresponding figure in
1980 was only 29 per cent. (Table 9.)
Introduction
This paper on foreign debt is the third update
of a paper originally prepared in September 1989(1).
The objectives of this paper are to provide
explanation and detailed information on:
-
- the levels of gross and net foreign debt;
-
- comparisons over time;
-
- the interest liability on foreign debt;
-
- composition of foreign debt, by institutional sector, currency,
country and repayment period; and
-
- the relationship between foreign borrowings and other capital
inflows.
Level of Foreign
Debt
Dollar
Amount
Concepts
Foreign debt is defined as the amount
borrowed from non-residents by residents of Australia. It is also
called external debt or the level of foreign
borrowing. Foreign debt is distinguished from other kinds of
foreign investment capital inflow such as foreign ownership,
because it carries with it the obligation to pay interest and repay
the principal. It should be noted that foreign debt does not equal
'national debt'. The latter is the total government debt-which
comprises government borrowing from overseas residents and
government borrowing from Australian residents-and thus excludes
overseas borrowings by the private sector.
Gross foreign debt is the total amount
of borrowings from non-residents. It includes securities issued
such as bonds as well as loans, advances, deposits, debentures and
overdrafts.
Net foreign debt is the gross foreign
debt, minus the value of foreign reserves held by the Reserve Bank
of Australia and minus lending by residents of Australia to
non-residents. Reserve assets held by the Reserve Bank
comprise gold, foreign exchange, special drawing rights and
Australia's reserve position in the International Monetary
Fund.
Comments
The gross foreign debt at June 2002 was $527
billion. After deducting Australia's reserve assets and lending
abroad of $196 billion, there was a net foreign debt of $330
billion. After being fairly low and stable through the late 1970s
and early 1980s, foreign debt increased steadily after 1981,
largely as a result of the accumulation of high current account
deficits and the expansion of Australian equity investment abroad.
Part of this overseas investment was funded by increased
borrowings.
Between June 1981 and June 2002, gross foreign
debt rose at an annual average rate of 17.2 per cent. The
corresponding figure for net foreign debt was higher at 18.5 per
cent, reflecting the fact that Australian lending abroad has not
risen as fast as Australian borrowings.
Details: Table 1 and Figure 1.
As
a Percentage of Gross Domestic Product
Concepts
Foreign debt is often expressed as a percentage
of annual gross domestic product (GDP) in order to show its
significance relative to the size of the overall economy. It allows
more appropriate comparisons over time, as GDP grows with inflation
and population, and reflects to a degree the economy's capacity to
repay. GDP is a measure of the total output of the economy.
Although this ratio is a conventional measure, it does not mean
that this proportion of GDP must be applied to foreign debt. GDP is
a flow of goods and services during a period, while foreign debt is
a level at one point in time which will involve interest and
repayments of principal over many periods into the future.
Two other measures of the relative size of
foreign debt are presented in Table 1. One is the ratio of foreign
debt to the capital stock (i.e. the total value of dwellings, other
buildings, engineering construction and equipment). The second is
the ratio of foreign debt to the value of exports of goods and
services.
Data on average debt per person (or family) are
sometimes used as a dramatic way of presenting foreign debt
statistics. This may make large numbers easier to comprehend, but
can be misleading to the extent that it suggests that liability for
the debt is evenly divided through the whole population. In fact,
liability lies largely with businesses (including foreign-owned),
which financed the purchase of assets, which in turn generate
income to service and repay the debt.
Comments
Throughout the late 1970s and early 1980s, gross
foreign debt was fairly low at less than 15 per cent of GDP. It
increased rapidly after 1981 and in the six years to June 1987 it
more than tripled from 13 to 45 per cent of GDP. It continued to
increase steadily over the next few years to 61 per cent at June
1999, rising sharply to 74 per cent at June 2001.
A similar pattern is evident for net foreign
debt as a proportion of GDP which has increased more than
seven-fold since June 1981.
Gross foreign debt has risen from around 80 per
cent of annual exports of goods and services in June 1981, to well
over triple those exports for the entire period from June 1998.
Gross foreign debt is currently 3.4 times the value of exports.
Net foreign debt per capita has increased from
$600 in June 1981 to $16,800 in June 2002.
Details: Table 1 and Figure 2.
Table 1. Gross and Net Foreign Debt,
1976-2002
|
30 June
|
$ million
|
|
per cent of GDP
|
|
per cent
|
|
$ per capita
|
|
Gross
foreign
debt
|
Net
foreign
debt
|
Gross
foreign
debt
|
Net
foreign
debt
|
Net foreign
debt / Net
capital stock
|
Gross foreign
debt / Exports
goods & services
|
Gross
foreign
debt
|
Net
foreign
debt
|
|
1976
|
7647
|
3133
|
|
9.6
|
3.9
|
|
1.4
|
68.1
|
|
545
|
223
|
|
1977
|
9929
|
5160
|
|
10.8
|
5.6
|
|
2.1
|
74.0
|
|
700
|
364
|
|
1978
|
12664
|
7434
|
|
12.6
|
7.4
|
|
2.7
|
88.9
|
|
882
|
518
|
|
1979
|
15615
|
9553
|
|
13.8
|
8.5
|
|
3.0
|
92.3
|
|
1076
|
658
|
|
1980
|
16666
|
7923
|
|
13.0
|
6.2
|
|
2.2
|
75.7
|
|
1134
|
539
|
|
1981
|
18847
|
9361
|
|
12.9
|
6.4
|
|
2.2
|
83.4
|
|
1263
|
627
|
|
1982
|
29394
|
18378
|
|
17.6
|
11.0
|
|
3.7
|
124.0
|
|
1936
|
1210
|
|
1983
|
41224
|
25169
|
|
22.8
|
13.9
|
|
4.6
|
160.8
|
|
2678
|
1635
|
|
1984
|
50676
|
31850
|
|
24.9
|
15.7
|
|
5.3
|
175.4
|
|
3253
|
2044
|
|
1985
|
75452
|
53055
|
|
33.5
|
23.6
|
|
8.0
|
211.1
|
|
4779
|
3360
|
|
1986
|
101925
|
78396
|
|
41.1
|
31.6
|
|
10.4
|
261.7
|
|
6363
|
4894
|
|
1987
|
122439
|
87971
|
|
45.0
|
32.3
|
|
10.6
|
276.3
|
|
7528
|
5409
|
|
1988
|
138130
|
96502
|
|
44.5
|
31.1
|
|
10.5
|
267.0
|
|
8355
|
5837
|
|
1989
|
161874
|
113989
|
|
46.0
|
32.4
|
|
11.1
|
292.4
|
|
9627
|
6779
|
|
1990
|
184239
|
130809
|
|
47.8
|
34.0
|
|
11.7
|
302.5
|
|
10796
|
7665
|
|
1991
|
197662
|
143153
|
|
49.7
|
36.0
|
|
12.3
|
298.3
|
|
11436
|
8282
|
|
1992
|
217955
|
162466
|
|
53.6
|
39.9
|
|
13.7
|
311.0
|
|
12458
|
9287
|
|
1993
|
238542
|
177453
|
|
56.0
|
41.6
|
|
14.5
|
310.2
|
|
13502
|
10044
|
|
1994
|
246484
|
171313
|
|
55.1
|
38.3
|
|
13.5
|
296.9
|
|
13805
|
9595
|
|
1995
|
268247
|
190790
|
|
56.9
|
40.5
|
|
14.4
|
306.0
|
|
14843
|
10557
|
|
1996
|
275533
|
193872
|
|
54.8
|
38.6
|
|
14.1
|
278.0
|
|
15048
|
10588
|
|
1997
|
302846
|
208628
|
|
57.2
|
39.4
|
|
14.7
|
288.0
|
|
16337
|
11254
|
|
1998
|
346971
|
227782
|
|
61.8
|
40.6
|
|
15.2
|
305.0
|
|
18496
|
12142
|
|
1999
|
359839
|
230689
|
|
60.8
|
39.0
|
|
14.5
|
321.2
|
|
18955
|
12152
|
|
2000
|
421771
|
277804
|
|
67.0
|
44.2
|
|
16.4
|
334.6
|
|
21938
|
14450
|
|
2001
|
498775
|
313472
|
|
74.2
|
46.6
|
|
17.3
|
324.9
|
|
25598
|
16088
|
|
2002
|
526501
|
330457
|
|
73.5
|
46.2
|
|
17.6
|
345.5
|
|
26716
|
16768
|
Interest Liability
Dollar
Amount
Concepts
Interest payments on debt are an important
aspect of the impact of foreign debt. While the level of debt
reflects the amount of principal that needs to be repaid over a
number of years, interest liabilities are incurred throughout the
period of the loan.
Comments
After being fairly low for a number of years,
Australia's interest liability on foreign debt increased from $1
billion in 1979-80 to $16 billion in 1990-91. It then fell, as the
result of declining interest rates, to $11 billion in 1993-94,
increasing to $17 billion in 1999-00 and $19 billion in 2000-01. In
2001-02, Australia's interest liability on foreign debt was $18
billion.
Details: Table 2 and Figure 3.
As a
Percentage of Gross Domestic Product
Concepts
As with the level of debt, it is useful to
obtain a measure of the relative size of interest on foreign debt.
The method most commonly used is interest as a percentage of
exports of goods and services (or debt service ratio). This measure
emphasises the international liquidity aspects of interest
payments. Another method is interest as a percentage of GDP, which
emphasises the burden on incomes.
The debt service ratio makes possible more
meaningful comparisons over time, because both interest and exports
are affected by inflation. As well, exports of goods and services
provide a source of foreign exchange income that can be applied to
meeting interest payments. (Other sources of foreign exchange are
property and labour income, transfer payments and further
borrowing.)
An estimate of the interest rate on gross
foreign debt can be obtained by dividing the interest paid in a
given year by the weighted sum of two-thirds the debt stock at the
start of the year and one-third the debt stock at the end of the
year. This accords with a method published by former Economic
Planning Advisory Council(2).
Comments
Interest paid on gross foreign debt was around
half of one per cent of GDP through the 1960s and most of the
1970s. The interest liability climbed to around 3 per cent in the
latter half of the 1980s and peaked at 4.0 per cent in 1990-91. It
has since fallen and for all of the period since 1992-93 it has
remained below 3 per cent. In 2001-02, Australia's interest
liability was 2.6 per cent of GDP, meaning that 2.6 per cent of the
value of all goods and services produced within Australia was
required to meet the interest commitment on our gross foreign
debt.
Interest received from overseas is relatively
small. In 2001-02 it amounted to 0.6 per cent of GDP.
As a percentage of exports of goods and
services, gross interest has risen from between 3 and 5 per cent in
the 1960s and 1970s to peak at 24.0 per cent in 1990-91. By
2001-02, gross interest had fallen to 12.0 per cent and net
interest to 9.2 per cent of the value of goods and services
exported.
The average interest rate for 2001-02 was 3.6
per cent per annum, considerably below rates of between 8 and 9 per
cent that were common during the 1980s.
Details: Table 2 and Figure 4.
Table 2. Interest on Foreign Debt, 1959-60 to
2001-02
$ Million and Debt Service
Ratios
|
$ million
|
|
% of exports of goods and services
|
|
% of GDP
|
|
% p.a.
|
|
Interest on
gross
foreign debt
|
Interest on
net
foreign debt
|
Interest on
gross
foreign debt
|
Interest on
net
foreign debt
|
Interest on
gross
foreign debt
|
Interest on
net
foreign debt
|
Average
interest
rate
|
|
1959-60
|
61
|
34
|
|
2.8
|
1.6
|
|
0.4
|
0.2
|
|
n.a.
|
|
1960-61
|
68
|
35
|
|
3.1
|
1.6
|
|
0.4
|
0.2
|
|
n.a.
|
|
1961-62
|
72
|
24
|
|
2.9
|
1.0
|
|
0.4
|
0.1
|
|
n.a.
|
|
1962-63
|
75
|
39
|
|
3.0
|
1.6
|
|
0.4
|
0.2
|
|
n.a.
|
|
1963-64
|
83
|
36
|
|
2.6
|
1.1
|
|
0.4
|
0.2
|
|
n.a.
|
|
1964-65
|
88
|
27
|
|
2.9
|
0.9
|
|
0.4
|
0.1
|
|
n.a.
|
|
1965-66
|
102
|
49
|
|
3.3
|
1.6
|
|
0.4
|
0.2
|
|
n.a.
|
|
1966-67
|
112
|
49
|
|
3.2
|
1.4
|
|
0.4
|
0.2
|
|
n.a.
|
|
1967-68
|
124
|
71
|
|
3.5
|
2.0
|
|
0.4
|
0.3
|
|
n.a.
|
|
1968-69
|
154
|
79
|
|
4.0
|
2.0
|
|
0.5
|
0.3
|
|
n.a.
|
|
1969-70
|
191
|
118
|
|
4.0
|
2.5
|
|
0.5
|
0.3
|
|
5.5
|
|
1970-71
|
237
|
143
|
|
4.7
|
2.8
|
|
0.6
|
0.4
|
|
6.0
|
|
1971-72
|
293
|
150
|
|
5.2
|
2.6
|
|
0.7
|
0.4
|
|
6.0
|
|
1972-73
|
297
|
78
|
|
4.2
|
1.1
|
|
0.6
|
0.2
|
|
5.4
|
|
1973-74
|
306
|
8
|
|
3.9
|
0.1
|
|
0.5
|
0.0
|
|
5.9
|
|
1974-75
|
404
|
123
|
|
4.0
|
1.2
|
|
0.6
|
0.2
|
|
7.6
|
|
1975-76
|
435
|
240
|
|
3.9
|
2.1
|
|
0.5
|
0.3
|
|
6.7
|
|
1976-77
|
477
|
314
|
|
3.6
|
2.3
|
|
0.5
|
0.3
|
|
5.7
|
|
1977-78
|
576
|
449
|
|
4.0
|
3.2
|
|
0.6
|
0.4
|
|
5.3
|
|
1978-79
|
838
|
677
|
|
5.0
|
4.0
|
|
0.7
|
0.6
|
|
6.1
|
|
1979-80
|
1108
|
908
|
|
5.0
|
4.1
|
|
0.9
|
0.7
|
|
6.9
|
|
1980-81
|
1216
|
938
|
|
5.4
|
4.1
|
|
0.8
|
0.6
|
|
7.0
|
|
1981-82
|
1839
|
1582
|
|
7.8
|
6.7
|
|
1.1
|
0.9
|
|
8.2
|
Table 2. Interest on Foreign Debt,
1959-60 to 2001-02 continued
$ Million and Debt Service
Ratios
|
$ million
|
|
% of exports of goods and services
|
|
% of GDP
|
|
% p.a.
|
|
Interest on
gross
foreign debt
|
Interest on
net
foreign debt
|
Interest on
gross
foreign debt
|
Interest on
net
foreign debt
|
Interest on
gross
foreign debt
|
Interest on
net
foreign debt
|
Average
interest
rate
|
|
1982-83
|
2839
|
2302
|
|
11.1
|
9.0
|
|
1.6
|
1.3
|
|
8.5
|
|
1983-84
|
3705
|
2884
|
|
12.8
|
10.0
|
|
1.8
|
1.4
|
|
8.3
|
|
1984-85
|
5297
|
4382
|
|
14.8
|
12.3
|
|
2.4
|
1.9
|
|
9.0
|
|
1985-86
|
6703
|
5932
|
|
17.2
|
15.2
|
|
2.7
|
2.4
|
|
8.0
|
|
1986-87
|
7891
|
7214
|
|
17.8
|
16.3
|
|
2.9
|
2.6
|
|
7.3
|
|
1987-88
|
8845
|
7793
|
|
17.1
|
15.1
|
|
2.8
|
2.5
|
|
6.9
|
|
1988-89
|
11197
|
9416
|
|
20.2
|
17.0
|
|
3.2
|
2.7
|
|
7.7
|
|
1989-90
|
14420
|
11935
|
|
23.7
|
19.6
|
|
3.7
|
3.1
|
|
8.5
|
|
1990-91
|
15922
|
12884
|
|
24.0
|
19.4
|
|
4.0
|
3.2
|
|
8.4
|
|
1991-92
|
13690
|
10717
|
|
19.5
|
15.3
|
|
3.4
|
2.6
|
|
6.7
|
|
1992-93
|
12123
|
9367
|
|
15.8
|
12.2
|
|
2.8
|
2.2
|
|
5.4
|
|
1993-94
|
11240
|
8961
|
|
13.5
|
10.8
|
|
2.5
|
2.0
|
|
4.7
|
|
1994-95
|
13215
|
10750
|
|
15.1
|
12.3
|
|
2.8
|
2.3
|
|
5.2
|
|
1995-96
|
13606
|
11362
|
|
13.7
|
11.5
|
|
2.7
|
2.3
|
|
5.0
|
|
1996-97
|
14276
|
11785
|
|
13.6
|
11.2
|
|
2.7
|
2.2
|
|
5.0
|
|
1997-98
|
14211
|
11040
|
|
12.5
|
9.7
|
|
2.5
|
2.0
|
|
4.5
|
|
1998-99
|
13643
|
10572
|
|
12.2
|
9.4
|
|
2.3
|
1.8
|
|
3.9
|
|
1999-00
|
17210
|
13300
|
|
13.7
|
10.6
|
|
2.7
|
2.1
|
|
4.5
|
|
2000-01
|
19395
|
14770
|
|
12.6
|
9.6
|
|
2.9
|
2.2
|
|
4.3
|
|
2001-02
|
18265
|
14007
|
|
12.0
|
9.2
|
|
2.6
|
2.0
|
|
3.6
|
Note: Where interest on foreign debt was not available, total
interest paid overseas was used.
Historical
Perspective
Debt as a Percentage of
Gross Domestic Product
Concepts
Long-term data can be used to give an historical
perspective on Australia's current foreign debt situation.
Comprehensive estimates of foreign debt are only available from
1976 onwards. However, data for public securities held overseas are
available for the whole of last century. Although public securities
now represent only a minor part of foreign debt, this was not the
case in the past. While estimates of private foreign debt are not
available for earlier years, data on interest paid suggest that the
level of this debt was insignificant prior to the mid-1960s. There
exists therefore a reasonable, although not comprehensive, measure
of foreign debt since 1901.
Comments
As a proportion of GDP, Australia's foreign debt
has risen rapidly from less than 10 per cent in the mid 1970s to 74
per cent today. Since the level of debt on public securities
represents almost all of total debt during the first half of last
century, it is possible to say that Australia's gross foreign debt
as a proportion of GDP in 2001-02 was at its second highest level,
while in 2000-01 it was at its highest level, in more than 60
years. Higher levels of debt were recorded in the periods 1900-01
to 1905-06 and 1930-31 to 1936-37.
Details: Table 3 and Figure 5.
Interest as a Percentage of Gross Domestic
Product
Concepts
Interest payments on public securities held
overseas are also available for the whole of the twentieth century.
Total interest payments on foreign debt are available since
official balance of payments statistics were first compiled (for
1936-37 to 1939-40 and from 1945-46 onwards). The difference
between total interest payments on foreign debt and interest
payments on only public securities held overseas is so small,
however, as to be virtually negligible before the mid-1960s.
Comments
For the first three decades of last century,
Australia's interest liability on foreign debt (approximated by its
interest liability on public securities held overseas) fluctuated
mostly between 2 and 3 per cent of GDP. It then climbed to 4.4 per
cent in 1930-31, before falling to less than one per cent for all
of the 1950s, 1960s, 1970s and the early part of the 1980s. It
climbed to 4.0 per cent in 1990-91, before falling again and in
2001-02 was equal to 2.6 per cent of GDP.
For all of the period from the mid-1940s through
to the early 1980s, the ratio of Australia's interest on foreign
debt to the value of its exports of goods and services (or debt
service ratio) was below 6 per cent. It climbed steadily thereafter
and by 1990-91 it had reached 24.0 per cent, falling by half to
12.0 per cent in 2001-02.
Details: Table 3 and Figure 6.
Table 3. Historical Data, 1900-01 to
2001-02
|
|
Level of gross foreign debt
|
|
Interest on gross foreign debt
|
|
|
Public securities / Official
|
|
Total
|
|
Public securities / Official
|
|
Total
|
|
|
$ million
|
% of GDP
|
|
$ million
|
% of GDP
|
|
$ million
|
% of exports
of goods
& services
|
% of GDP
|
|
$ million
|
% of exports
of goods
& services
|
% of GDP
|
|
1900-01
|
357
|
85.2
|
|
n.a.
|
n.a.
|
|
13
|
12.6
|
3.1
|
|
n.a.
|
n.a.
|
n.a.
|
|
1901-02
|
364
|
82.0
|
|
n.a.
|
n.a.
|
|
13
|
13.4
|
2.9
|
|
n.a.
|
n.a.
|
n.a.
|
|
1902-03
|
375
|
87.6
|
|
n.a.
|
n.a.
|
|
14
|
14.9
|
3.3
|
|
n.a.
|
n.a.
|
n.a.
|
|
1903-04
|
377
|
84.2
|
|
n.a.
|
n.a.
|
|
14
|
13.2
|
3.1
|
|
n.a.
|
n.a.
|
n.a.
|
|
1904-05
|
378
|
85.1
|
|
n.a.
|
n.a.
|
|
14
|
11.6
|
3.2
|
|
n.a.
|
n.a.
|
n.a.
|
|
1905-06
|
384
|
80.2
|
|
n.a.
|
n.a.
|
|
14
|
10.5
|
2.9
|
|
n.a.
|
n.a.
|
n.a.
|
|
1906-07
|
372
|
69.1
|
|
n.a.
|
n.a.
|
|
13
|
8.8
|
2.4
|
|
n.a.
|
n.a.
|
n.a.
|
|
1907-08
|
367
|
68.5
|
|
n.a.
|
n.a.
|
|
13
|
9.0
|
2.4
|
|
n.a.
|
n.a.
|
n.a.
|
|
1908-09
|
381
|
66.5
|
|
n.a.
|
n.a.
|
|
14
|
10.1
|
2.4
|
|
n.a.
|
n.a.
|
n.a.
|
|
1909-10
|
383
|
61.5
|
|
n.a.
|
n.a.
|
|
14
|
8.9
|
2.2
|
|
n.a.
|
n.a.
|
n.a.
|
|
1910-11
|
382
|
55.8
|
|
n.a.
|
n.a.
|
|
14
|
8.4
|
2.0
|
|
n.a.
|
n.a.
|
n.a.
|
|
1911-12
|
388
|
52.9
|
|
n.a.
|
n.a.
|
|
14
|
8.5
|
1.9
|
|
n.a.
|
n.a.
|
n.a.
|
|
1912-13
|
409
|
51.0
|
|
n.a.
|
n.a.
|
|
15
|
8.8
|
1.9
|
|
n.a.
|
n.a.
|
n.a.
|
|
1913-14
|
455
|
52.7
|
|
n.a.
|
n.a.
|
|
16
|
9.4
|
1.9
|
|
n.a.
|
n.a.
|
n.a.
|
|
1914-15
|
493
|
58.8
|
|
n.a.
|
n.a.
|
|
19
|
13.4
|
2.3
|
|
n.a.
|
n.a.
|
n.a.
|
|
1915-16
|
542
|
55.9
|
|
n.a.
|
n.a.
|
|
21
|
12.7
|
2.2
|
|
n.a.
|
n.a.
|
n.a.
|
|
1916-17
|
587
|
57.4
|
|
n.a.
|
n.a.
|
|
23
|
9.5
|
2.3
|
|
n.a.
|
n.a.
|
n.a.
|
|
1917-18
|
701
|
66.0
|
|
n.a.
|
n.a.
|
|
29
|
13.9
|
2.7
|
|
n.a.
|
n.a.
|
n.a.
|
|
1918-19
|
694
|
60.6
|
|
n.a.
|
n.a.
|
|
29
|
12.8
|
2.5
|
|
n.a.
|
n.a.
|
n.a.
|
|
1919-20
|
716
|
57.1
|
|
n.a.
|
n.a.
|
|
31
|
10.3
|
2.5
|
|
n.a.
|
n.a.
|
n.a.
|
|
1920-21
|
743
|
53.8
|
|
n.a.
|
n.a.
|
|
33
|
12.3
|
2.4
|
|
n.a.
|
n.a.
|
n.a.
|
|
1921-22
|
823
|
59.7
|
|
n.a.
|
n.a.
|
|
38
|
14.2
|
2.8
|
|
n.a.
|
n.a.
|
n.a.
|
|
1922-23
|
839
|
55.6
|
|
n.a.
|
n.a.
|
|
38
|
14.5
|
2.5
|
|
n.a.
|
n.a.
|
n.a.
|
|
1923-24
|
922
|
58.8
|
|
n.a.
|
n.a.
|
|
43
|
16.2
|
2.7
|
|
n.a.
|
n.a.
|
n.a.
|
|
1924-25
|
928
|
53.9
|
|
n.a.
|
n.a.
|
|
44
|
12.9
|
2.6
|
|
n.a.
|
n.a.
|
n.a.
|
|
1925-26
|
1004
|
60.5
|
|
n.a.
|
n.a.
|
|
48
|
15.9
|
2.9
|
|
n.a.
|
n.a.
|
n.a.
|
Table 3. Historical Data, 1900-01 to
2001-02 continued
|
|
Level of gross foreign debt
|
|
Interest on gross foreign debt
|
|
|
Public securities / Official
|
|
Total
|
|
Public securities / Official
|
|
Total
|
|
|
$ million
|
% of GDP
|
|
$ million
|
% of GDP
|
|
$ million
|
% of exports
of goods
& services
|
% of GDP
|
|
$ million
|
% of exports
of goods
& services
|
% of GDP
|
|
1926-27
|
1032
|
59.7
|
|
n.a.
|
n.a.
|
|
49
|
17.1
|
2.8
|
|
n.a.
|
n.a.
|
n.a.
|
|
1927-28
|
1142
|
65.7
|
|
n.a.
|
n.a.
|
|
55
|
18.8
|
3.2
|
|
n.a.
|
n.a.
|
n.a.
|
|
1928-29
|
1144
|
66.8
|
|
n.a.
|
n.a.
|
|
55
|
17.9
|
3.2
|
|
n.a.
|
n.a.
|
n.a.
|
|
1929-30
|
1150
|
73.4
|
|
n.a.
|
n.a.
|
|
55
|
25.5
|
3.5
|
|
n.a.
|
n.a.
|
n.a.
|
|
1930-31
|
1198
|
93.1
|
|
n.a.
|
n.a.
|
|
57
|
28.4
|
4.4
|
|
n.a.
|
n.a.
|
n.a.
|
|
1931-32
|
1310
|
108.3
|
|
n.a.
|
n.a.
|
|
49
|
22.4
|
4.0
|
|
n.a.
|
n.a.
|
n.a.
|
|
1932-33
|
1299
|
102.8
|
|
n.a.
|
n.a.
|
|
47
|
20.9
|
3.7
|
|
n.a.
|
n.a.
|
n.a.
|
|
1933-34
|
1289
|
95.1
|
|
n.a.
|
n.a.
|
|
44
|
17.0
|
3.2
|
|
n.a.
|
n.a.
|
n.a.
|
|
1934-35
|
1286
|
89.8
|
|
n.a.
|
n.a.
|
|
43
|
17.6
|
3.0
|
|
n.a.
|
n.a.
|
n.a.
|
|
1935-36
|
1281
|
81.4
|
|
n.a.
|
n.a.
|
|
42
|
14.6
|
2.7
|
|
n.a.
|
n.a.
|
n.a.
|
|
1936-37
|
1278
|
74.4
|
|
n.a.
|
n.a.
|
|
41
|
11.5
|
2.4
|
|
42
|
11.8
|
2.4
|
|
1937-38
|
1278
|
68.8
|
|
n.a.
|
n.a.
|
|
41
|
11.7
|
2.2
|
|
42
|
12.0
|
2.3
|
|
1938-39
|
1288
|
70.8
|
|
n.a.
|
n.a.
|
|
41
|
13.1
|
2.3
|
|
42
|
13.4
|
2.3
|
|
1939-40
|
1306
|
66.0
|
|
n.a.
|
n.a.
|
|
41
|
10.9
|
2.1
|
|
42
|
11.2
|
2.1
|
|
1940-41
|
1324
|
61.7
|
|
n.a.
|
n.a.
|
|
42
|
11.1
|
2.0
|
|
n.a.
|
n.a.
|
n.a.
|
|
1941-42
|
1317
|
52.7
|
|
n.a.
|
n.a.
|
|
40
|
9.6
|
1.6
|
|
n.a.
|
n.a.
|
n.a.
|
|
1942-43
|
1321
|
46.2
|
|
n.a.
|
n.a.
|
|
40
|
9.3
|
1.4
|
|
n.a.
|
n.a.
|
n.a.
|
|
1943-44
|
1269
|
43.7
|
|
n.a.
|
n.a.
|
|
39
|
6.6
|
1.3
|
|
n.a.
|
n.a.
|
n.a.
|
|
1944-45
|
1230
|
43.3
|
|
n.a.
|
n.a.
|
|
38
|
7.2
|
1.3
|
|
n.a.
|
n.a.
|
n.a.
|
|
1945-46
|
1148
|
39.1
|
|
n.a.
|
n.a.
|
|
32
|
5.7
|
1.1
|
|
33
|
5.9
|
1.1
|
|
1946-47
|
1111
|
35.6
|
|
n.a.
|
n.a.
|
|
31
|
4.7
|
1.0
|
|
32
|
4.9
|
1.0
|
|
1947-48
|
1122
|
29.9
|
|
n.a.
|
n.a.
|
|
29
|
3.2
|
0.8
|
|
30
|
3.3
|
0.8
|
|
1948-49
|
1093
|
24.4
|
|
n.a.
|
n.a.
|
|
28
|
2.5
|
0.6
|
|
30
|
2.6
|
0.7
|
|
1949-50
|
1099
|
20.9
|
|
n.a.
|
n.a.
|
|
27
|
2.1
|
0.5
|
|
29
|
2.2
|
0.6
|
|
1950-51
|
1067
|
15.2
|
|
n.a.
|
n.a.
|
|
26
|
1.2
|
0.4
|
|
27
|
1.3
|
0.4
|
|
1951-52
|
1113
|
14.8
|
|
n.a.
|
n.a.
|
|
27
|
1.8
|
0.4
|
|
28
|
1.9
|
0.4
|
Table 3. Historical Data, 1900-01 to
2001-02 continued
|
|
Level of gross foreign debt
|
|
Interest on gross foreign debt
|
|
|
Public securities / Official
|
|
Total
|
|
Public securities / Official
|
|
Total
|
|
|
$ million
|
% of GDP
|
|
$ million
|
% of GDP
|
|
$ million
|
% of exports
of goods
& services
|
% of GDP
|
|
$ million
|
% of exports
of goods
& services
|
% of GDP
|
|
1952-53
|
1142
|
13.4
|
|
n.a.
|
n.a.
|
|
28
|
1.5
|
0.3
|
|
30
|
1.6
|
0.4
|
|
1953-54
|
1165
|
12.5
|
|
n.a.
|
n.a.
|
|
28
|
1.6
|
0.3
|
|
29
|
1.6
|
0.3
|
|
1954-55
|
1216
|
12.2
|
|
n.a.
|
n.a.
|
|
30
|
1.8
|
0.3
|
|
31
|
1.8
|
0.3
|
|
1955-56
|
1269
|
11.8
|
|
n.a.
|
n.a.
|
|
45
|
2.6
|
0.4
|
|
46
|
2.7
|
0.4
|
|
1956-57
|
1216
|
10.4
|
|
n.a.
|
n.a.
|
|
44
|
2.0
|
0.4
|
|
46
|
2.1
|
0.4
|
|
1957-58
|
1248
|
10.4
|
|
n.a.
|
n.a.
|
|
47
|
2.6
|
0.4
|
|
49
|
2.7
|
0.4
|
|
1958-59
|
1319
|
10.2
|
|
n.a.
|
n.a.
|
|
52
|
2.8
|
0.4
|
|
54
|
2.9
|
0.4
|
|
1959-60
|
1389
|
8.8
|
|
n.a.
|
n.a.
|
|
56
|
2.6
|
0.4
|
|
61
|
2.8
|
0.4
|
|
1960-61
|
1413
|
8.5
|
|
n.a.
|
n.a.
|
|
60
|
2.8
|
0.4
|
|
68
|
3.1
|
0.4
|
|
1961-62
|
1424
|
8.4
|
|
n.a.
|
n.a.
|
|
61
|
2.5
|
0.4
|
|
72
|
2.9
|
0.4
|
|
1962-63
|
1522
|
8.4
|
|
n.a.
|
n.a.
|
|
67
|
2.7
|
0.4
|
|
75
|
3.0
|
0.4
|
|
1963-64
|
1545
|
7.7
|
|
n.a.
|
n.a.
|
|
69
|
2.2
|
0.3
|
|
83
|
2.6
|
0.4
|
|
1964-65
|
1539
|
7.0
|
|
n.a.
|
n.a.
|
|
69
|
2.3
|
0.3
|
|
88
|
2.9
|
0.4
|
|
1965-66
|
1505
|
6.5
|
|
n.a.
|
n.a.
|
|
69
|
2.2
|
0.3
|
|
102
|
3.3
|
0.4
|
|
1966-67
|
1562
|
6.1
|
|
n.a.
|
n.a.
|
|
73
|
2.1
|
0.3
|
|
112
|
3.2
|
0.4
|
|
1967-68
|
1557
|
5.6
|
|
n.a.
|
n.a.
|
|
77
|
2.2
|
0.3
|
|
124
|
3.5
|
0.4
|
|
1968-69
|
1747
|
5.6
|
|
n.a.
|
n.a.
|
|
84
|
2.2
|
0.3
|
|
154
|
4.0
|
0.5
|
|
1969-70
|
1636
|
4.7
|
|
n.a.
|
n.a.
|
|
91
|
1.9
|
0.3
|
|
191
|
4.0
|
0.5
|
|
1970-71
|
1600
|
4.2
|
|
n.a.
|
n.a.
|
|
89
|
1.7
|
0.2
|
|
237
|
4.7
|
0.6
|
|
1971-72
|
1497
|
3.5
|
|
n.a.
|
n.a.
|
|
91
|
1.6
|
0.2
|
|
293
|
5.2
|
0.7
|
|
1972-73
|
1350
|
2.8
|
|
n.a.
|
n.a.
|
|
84
|
1.2
|
0.2
|
|
297
|
4.2
|
0.6
|
|
1973-74
|
1163
|
2.0
|
|
n.a.
|
n.a.
|
|
80
|
1.0
|
0.1
|
|
306
|
3.9
|
0.5
|
|
1974-75
|
1334
|
2.0
|
|
n.a.
|
n.a.
|
|
86
|
0.9
|
0.1
|
|
404
|
4.0
|
0.6
|
|
1975-76
|
1501
|
1.9
|
|
7647
|
9.6
|
|
94
|
0.8
|
0.1
|
|
435
|
3.9
|
0.5
|
|
1976-77
|
2417
|
2.6
|
|
9929
|
10.8
|
|
130
|
1.0
|
0.1
|
|
477
|
3.6
|
0.5
|
|
1977-78
|
4351
|
4.3
|
|
12664
|
12.6
|
|
187
|
1.3
|
0.2
|
|
576
|
4.0
|
0.6
|
Table 3. Historical Data, 1900-01 to
2001-02 continued
|
|
Level of gross foreign debt
|
|
Interest on gross foreign debt
|
|
|
Public securities / Official
|
|
Total
|
|
Public securities / Official
|
|
Total
|
|
|
$ million
|
% of GDP
|
|
$ million
|
% of GDP
|
|
$ million
|
% of exports
of goods
& services
|
% of GDP
|
|
$ million
|
% of exports
of goods
& services
|
% of GDP
|
|
1978-79
|
5928
|
5.3
|
|
15615
|
13.8
|
|
356
|
2.1
|
0.3
|
|
838
|
5.0
|
0.7
|
|
1979-80
|
5894
|
4.6
|
|
16666
|
13.0
|
|
438
|
2.0
|
0.3
|
|
1108
|
5.0
|
0.9
|
|
1980-81
|
5105
|
3.5
|
|
18847
|
12.9
|
|
416
|
1.8
|
0.3
|
|
1216
|
5.4
|
0.8
|
|
1981-82
|
6046
|
3.6
|
|
29394
|
17.6
|
|
435
|
1.8
|
0.3
|
|
1839
|
7.8
|
1.1
|
|
1982-83
|
8151
|
4.5
|
|
41224
|
22.8
|
|
596
|
2.3
|
0.3
|
|
2839
|
11.1
|
1.6
|
|
1983-84
|
9242
|
4.5
|
|
50676
|
24.9
|
|
711
|
2.5
|
0.3
|
|
3705
|
12.8
|
1.8
|
|
1984-85
|
15211
|
6.8
|
|
75452
|
33.5
|
|
964
|
2.7
|
0.4
|
|
5297
|
14.8
|
2.4
|
|
1985-86
|
23934
|
9.6
|
|
101925
|
41.1
|
|
1474
|
3.8
|
0.6
|
|
6703
|
17.2
|
2.7
|
|
1986-87
|
30763
|
11.3
|
|
122439
|
45.0
|
|
2288
|
5.2
|
0.8
|
|
7891
|
17.8
|
2.9
|
|
1987-88
|
32350
|
10.4
|
|
138130
|
44.5
|
|
2962
|
5.7
|
1.0
|
|
8845
|
17.1
|
2.8
|
|
1988-89
|
32013
|
9.1
|
|
161874
|
46.0
|
|
3209
|
5.8
|
0.9
|
|
11197
|
20.2
|
3.2
|
|
1989-90
|
37475
|
9.7
|
|
184239
|
47.8
|
|
3982
|
6.5
|
1.0
|
|
14420
|
23.7
|
3.7
|
|
1990-91
|
39856
|
10.0
|
|
197662
|
49.7
|
|
4437
|
6.7
|
1.1
|
|
15922
|
24.0
|
4.0
|
|
1991-92
|
47638
|
11.7
|
|
217955
|
53.6
|
|
3777
|
5.4
|
0.9
|
|
13690
|
19.5
|
3.4
|
|
1992-93
|
58825
|
13.8
|
|
238542
|
56.0
|
|
3335
|
4.3
|
0.8
|
|
12123
|
15.8
|
2.8
|
|
1993-94
|
62179
|
13.9
|
|
246484
|
55.1
|
|
3658
|
4.4
|
0.8
|
|
11240
|
13.5
|
2.5
|
|
1994-95
|
78372
|
16.6
|
|
268247
|
56.9
|
|
4952
|
5.6
|
1.1
|
|
13215
|
15.1
|
2.8
|
|
1995-96
|
81136
|
16.1
|
|
275533
|
54.8
|
|
5066
|
5.1
|
1.0
|
|
13606
|
13.7
|
2.7
|
|
1996-97
|
82824
|
15.6
|
|
302846
|
57.2
|
|
4900
|
4.7
|
0.9
|
|
14276
|
13.6
|
2.7
|
|
1997-98
|
75082
|
13.4
|
|
346971
|
61.8
|
|
3753
|
3.3
|
0.7
|
|
14211
|
12.5
|
2.5
|
|
1998-99
|
65185
|
11.0
|
|
359839
|
60.8
|
|
2990
|
2.7
|
0.5
|
|
13643
|
12.2
|
2.3
|
|
1999-00
|
51966
|
8.3
|
|
421771
|
67.0
|
|
2884
|
2.3
|
0.5
|
|
17210
|
13.7
|
2.7
|
|
2000-01
|
51771
|
7.7
|
|
498775
|
74.2
|
|
2355
|
1.5
|
0.4
|
|
19395
|
12.6
|
2.9
|
|
2001-02
|
50035
|
7.0
|
|
526501
|
73.5
|
|
2198
|
1.4
|
0.3
|
|
18265
|
12.0
|
2.6
|
n.a. Not available
Note : Where interest on foreign debt was not
available, total interest paid overseas was used.
Composition of Gross
Foreign Debt by Institutional Sector
Concepts
Foreign debt may be classified by the type of
borrower.
The private sector comprises all
corporations outside the general government sector. It can be
subdivided into financial and non-financial
corporations. Financial corporations, such as banks and
insurance companies, are mainly engaged in incurring liabilities
and acquiring financial assets while non-financial corporations are
mainly engaged in the production of goods and services for
sale.
The public sector comprises the general
government sector, and all financial and non-financial corporations
controlled by the general government sector. General government
consists of departments, offices and organisations which are the
agencies of the Commonwealth, State or local public authorities.
Public financial corporations include the Reserve Bank and central
borrowing authorities. Central borrowing authorities are entities
set up by State and Territory governments to centralise their
borrowing and financial assets management. It has only been since
1984 that State and Territory governments have begun borrowing in
their own right(3); local government foreign borrowing
is negligible.
Comments
Among the interesting trends in the distribution
of gross foreign debt by institutional sector are:
-
- Decline in the general government and Reserve Bank's share of
gross foreign debt from 35 per cent in 1980 to 8 per cent in 1992,
rising to 14 per cent in 1996 and falling again to 5 per cent in
2002.
-
- Growth in the central borrowing authorities' (i.e. State and
Territory governments') share from nil in 1983 to 18 per cent in
1995, falling to 5 per cent in 2002.
-
- Little change in the private sector's share during the 1980s
and first half of the 1990s, increasing rapidly from 63 per cent in
1996 to 87 per cent in 2002.
-
- Rapid rise in the private financial corporations' share from 7
per cent in 1980 to 69 per cent in 2002.
-
- Decline in the private non-financial corporations' share from
48 per cent in 1980 to 18 per cent in 2002.
Details: Table 4 and Figure 7.
Table 4. Composition of Gross Foreign
Debt-Institutional Sector, 1980-2002
$ Million
|
|
Public Sector
|
|
Private Sector
|
|
Total
gross
foreign
debt
|
|
30 June
|
General government
and Reserve Bank
|
Central
borrowing
authorities
|
Other
|
Total
public
sector
|
|
Financial
corporations
|
Non-
financial
corporations
|
Total
private
sector
|
|
|
1980
|
5894
|
0
|
1497
|
7391
|
|
1226
|
8049
|
9275
|
|
16666
|
|
1981
|
5105
|
0
|
2122
|
7227
|
|
1753
|
9867
|
11620
|
|
18847
|
|
1982
|
6046
|
0
|
3786
|
9832
|
|
3464
|
16098
|
19562
|
|
29394
|
|
1983
|
8151
|
0
|
6895
|
15046
|
|
4269
|
21909
|
26178
|
|
41224
|
|
1984
|
8902
|
340
|
9358
|
18600
|
|
6086
|
25990
|
32076
|
|
50676
|
|
1985
|
13310
|
1901
|
15597
|
30808
|
|
10121
|
34523
|
44644
|
|
75452
|
|
1986
|
20079
|
3855
|
19864
|
43798
|
|
15957
|
42170
|
58127
|
|
101925
|
|
1987
|
24079
|
6684
|
20251
|
51014
|
|
23070
|
48355
|
71425
|
|
122439
|
|
1988
|
23932
|
8418
|
21155
|
53505
|
|
32474
|
52151
|
84625
|
|
138130
|
|
1989
|
19344
|
12669
|
25999
|
58012
|
|
41515
|
62347
|
103862
|
|
161874
|
|
1990
|
20498
|
16977
|
30181
|
67656
|
|
51161
|
65421
|
116583
|
|
184239
|
|
1991
|
18347
|
21509
|
29364
|
69220
|
|
62457
|
65985
|
128441
|
|
197661
|
|
1992
|
18038
|
29600
|
30522
|
78160
|
|
72263
|
67532
|
139795
|
|
217955
|
|
1993
|
23417
|
35408
|
33128
|
91953
|
|
74922
|
71666
|
146588
|
|
238541
|
|
1994
|
24545
|
37634
|
30963
|
93142
|
|
88926
|
64417
|
153342
|
|
246484
|
|
1995
|
30027
|
48345
|
23352
|
101724
|
|
103729
|
62795
|
166524
|
|
268248
|
|
1996
|
39748
|
41388
|
20133
|
101269
|
|
115780
|
58484
|
174264
|
|
275533
|
|
1997
|
42621
|
40203
|
13454
|
96278
|
|
145415
|
61153
|
206568
|
|
302846
|
|
1998
|
38511
|
36571
|
11639
|
86721
|
|
187507
|
72742
|
260250
|
|
346971
|
|
1999
|
32413
|
32772
|
10094
|
75279
|
|
209734
|
74825
|
284560
|
|
359839
|
|
2000
|
22906
|
29060
|
11479
|
63445
|
|
271377
|
86949
|
358326
|
|
421771
|
|
2001
|
24149
|
27622
|
17179
|
68950
|
|
328896
|
100929
|
429825
|
|
498775
|
|
2002
|
25109
|
24926
|
18201
|
68236
|
|
362602
|
95663
|
458265
|
|
526501
|
Table 4. Composition of Gross Foreign
Debt-Institutional Sector, 1980-2002
continued
Per Cent of Total
|
|
Public Sector
|
|
Private Sector
|
|
Total
gross
foreign
debt
|
|
30 June
|
General government
and Reserve Bank
|
Central
borrowing
authorities
|
Other
|
Total
public
sector
|
|
Financial
corporations
|
Non-
financial
corporations
|
Total
private
sector
|
|
|
1980
|
35.4
|
0.0
|
9.0
|
44.3
|
|
7.4
|
48.3
|
55.7
|
|
100.0
|
|
1981
|
27.1
|
0.0
|
11.3
|
38.3
|
|
9.3
|
52.4
|
61.7
|
|
100.0
|
|
1982
|
20.6
|
0.0
|
12.9
|
33.4
|
|
11.8
|
54.8
|
66.6
|
|
100.0
|
|
1983
|
19.8
|
0.0
|
16.7
|
36.5
|
|
10.4
|
53.1
|
63.5
|
|
100.0
|
|
1984
|
17.6
|
0.7
|
18.5
|
36.7
|
|
12.0
|
51.3
|
63.3
|
|
100.0
|
|
1985
|
17.6
|
2.5
|
20.7
|
40.8
|
|
13.4
|
45.8
|
59.2
|
|
100.0
|
|
1986
|
19.7
|
3.8
|
19.5
|
43.0
|
|
15.7
|
41.4
|
57.0
|
|
100.0
|
|
1987
|
19.7
|
5.5
|
16.5
|
41.7
|
|
18.8
|
39.5
|
58.3
|
|
100.0
|
|
1988
|
17.3
|
6.1
|
15.3
|
38.7
|
|
23.5
|
37.8
|
61.3
|
|
100.0
|
|
1989
|
12.0
|
7.8
|
16.1
|
35.8
|
|
25.6
|
38.5
|
64.2
|
|
100.0
|
|
1990
|
11.1
|
9.2
|
16.4
|
36.7
|
|
27.8
|
35.5
|
63.3
|
|
100.0
|
|
1991
|
9.3
|
10.9
|
14.9
|
35.0
|
|
31.6
|
33.4
|
65.0
|
|
100.0
|
|
1992
|
8.3
|
13.6
|
14.0
|
35.9
|
|
33.2
|
31.0
|
64.1
|
|
100.0
|
|
1993
|
9.8
|
14.8
|
13.9
|
38.5
|
|
31.4
|
30.0
|
61.5
|
|
100.0
|
|
1994
|
10.0
|
15.3
|
12.6
|
37.8
|
|
36.1
|
26.1
|
62.2
|
|
100.0
|
|
1995
|
11.2
|
18.0
|
8.7
|
37.9
|
|
38.7
|
23.4
|
62.1
|
|
100.0
|
|
1996
|
14.4
|
15.0
|
7.3
|
36.8
|
|
42.0
|
21.2
|
63.2
|
|
100.0
|
|
1997
|
14.1
|
13.3
|
4.4
|
31.8
|
|
48.0
|
20.2
|
68.2
|
|
100.0
|
|
1998
|
11.1
|
10.5
|
3.4
|
25.0
|
|
54.0
|
21.0
|
75.0
|
|
100.0
|
|
1999
|
9.0
|
9.1
|
2.8
|
20.9
|
|
58.3
|
20.8
|
79.1
|
|
100.0
|
|
2000
|
5.4
|
6.9
|
2.7
|
15.0
|
|
64.3
|
20.6
|
85.0
|
|
100.0
|
|
2001
|
4.8
|
5.5
|
3.4
|
13.8
|
|
65.9
|
20.2
|
86.2
|
|
100.0
|
|
2002
|
4.8
|
4.7
|
3.5
|
13.0
|
|
68.9
|
18.2
|
87.0
|
|
100.0
|
Table 4. Composition of Gross Foreign
Debt-Institutional Sector, 1980-2002
continued
Per Cent of GDP
|
|
Public Sector
|
|
Private Sector
|
|
Total
gross
foreign
debt
|
|
30 June
|
General government
and Reserve Bank
|
Central
borrowing
authorities
|
Other
|
Total
public
sector
|
|
Financial
corporations
|
Non-
financial
corporations
|
Total
private
sector
|
|
|
1980
|
4.6
|
0.0
|
1.2
|
5.7
|
|
1.0
|
6.3
|
7.2
|
|
13.0
|
|
1981
|
3.5
|
0.0
|
1.5
|
5.0
|
|
1.2
|
6.8
|
8.0
|
|
12.9
|
|
1982
|
3.6
|
0.0
|
2.3
|
5.9
|
|
2.1
|
9.6
|
11.7
|
|
17.6
|
|
1983
|
4.5
|
0.0
|
3.8
|
8.3
|
|
2.4
|
12.1
|
14.5
|
|
22.8
|
|
1984
|
4.4
|
0.2
|
4.6
|
9.1
|
|
3.0
|
12.8
|
15.8
|
|
24.9
|
|
1985
|
5.9
|
0.8
|
6.9
|
13.7
|
|
4.5
|
15.3
|
19.8
|
|
33.5
|
|
1986
|
8.1
|
1.6
|
8.0
|
17.6
|
|
6.4
|
17.0
|
23.4
|
|
41.1
|
|
1987
|
8.8
|
2.5
|
7.4
|
18.7
|
|
8.5
|
17.8
|
26.2
|
|
45.0
|
|
1988
|
7.7
|
2.7
|
6.8
|
17.2
|
|
10.5
|
16.8
|
27.2
|
|
44.5
|
|
1989
|
5.5
|
3.6
|
7.4
|
16.5
|
|
11.8
|
17.7
|
29.5
|
|
46.0
|
|
1990
|
5.3
|
4.4
|
7.8
|
17.6
|
|
13.3
|
17.0
|
30.3
|
|
47.8
|
|
1991
|
4.6
|
5.4
|
7.4
|
17.4
|
|
15.7
|
16.6
|
32.3
|
|
49.7
|
|
1992
|
4.4
|
7.3
|
7.5
|
19.2
|
|
17.8
|
16.6
|
34.4
|
|
53.6
|
|
1993
|
5.5
|
8.3
|
7.8
|
21.6
|
|
17.6
|
16.8
|
34.4
|
|
56.0
|
|
1994
|
5.5
|
8.4
|
6.9
|
20.8
|
|
19.9
|
14.4
|
34.3
|
|
55.1
|
|
1995
|
6.4
|
10.3
|
5.0
|
21.6
|
|
22.0
|
13.3
|
35.3
|
|
56.9
|
|
1996
|
7.9
|
8.2
|
4.0
|
20.1
|
|
23.0
|
11.6
|
34.7
|
|
54.8
|
|
1997
|
8.0
|
7.6
|
2.5
|
18.2
|
|
27.4
|
11.5
|
39.0
|
|
57.2
|
|
1998
|
6.9
|
6.5
|
2.1
|
15.5
|
|
33.4
|
13.0
|
46.4
|
|
61.8
|
|
1999
|
5.5
|
5.5
|
1.7
|
12.7
|
|
35.5
|
12.6
|
48.1
|
|
60.8
|
|
2000
|
3.6
|
4.6
|
1.8
|
10.1
|
|
43.1
|
13.8
|
56.9
|
|
67.0
|
|
2001
|
3.6
|
4.1
|
2.6
|
10.3
|
|
48.9
|
15.0
|
63.9
|
|
74.2
|
|
2002
|
3.5
|
3.5
|
2.5
|
9.5
|
|
50.6
|
13.4
|
64.0
|
|
73.5
|
Composition of Gross Foreign Debt by
Currency
Concepts
Loans in foreign currencies are converted to
Australian dollars ($A) at the exchange rate applying on the last
day of the period.
The greater the proportion of debt that is
denominated in foreign currency, the greater the risk that a fall
in the $A with respect to another currency will increase the $A
value of the debt denominated in that currency. To eliminate or
reduce exposure to such risk, many Australian enterprises engage in
hedging activities, predominantly through foreign currency
derivative contracts. According to a survey conducted by the ABS,
Australian resident enterprises in 2001 had policies in place that
had the intent of hedging 77 per cent of the value of their foreign
currency denominated debt assets and liabilities(4).
Comments
The proportion of Australia's foreign debt
denominated in $A has increased substantially since the early
1980s, reflecting the increased willingness by foreigners to hold
$A denominated assets. Between 1981 and 1997, the proportion of
debt denominated in $A increased from 12 to 45 per cent, falling
thereafter to 33 per cent in 2002.
Of the rest, the largest share of debt is
expressed in United States dollars, ranging from a high of 52 per
cent in 1984 to a low of 28 per cent in 1996; in 2002 the share was
45 per cent. Small proportions of debt are denominated in Euros (6
per cent in 2002), Japanese Yen (5 per cent) and Pounds Sterling (4
per cent).
Details: Table 5 and Figure 8.
Table 5. Composition of Gross Foreign
Debt-Currency, 1981-2002
$ Million (In Australian Dollar
Terms)
|
|
|
Foreign Currency
|
|
|
|
30 June
|
Australian Dollars
|
U.S. Dollars
|
Pounds Sterling
|
Swiss Francs
|
Euro
|
Japanese Yen
|
Other (a)
|
Total
|
|
Total gross foreign debt
|
|
1981
|
2198
|
7874
|
497
|
973
|
..
|
1066
|
2556
|
12966
|
|
18847
|
|
1982
|
3127
|
13609
|
748
|
1869
|
..
|
1196
|
3629
|
21051
|
|
29394
|
|
1983
|
5395
|
20220
|
1228
|
2356
|
..
|
1726
|
4967
|
30497
|
|
41224
|
|
1984
|
7278
|
26085
|
1435
|
2570
|
..
|
1585
|
5148
|
36823
|
|
50676
|
|
1985
|
12782
|
37192
|
1836
|
4023
|
..
|
4924
|
6716
|
54691
|
|
75452
|
|
1986
|
21543
|
45715
|
3032
|
5380
|
..
|
9148
|
7732
|
71007
|
|
101925
|
|
1987
|
26601
|
52451
|
3846
|
5212
|
..
|
9997
|
9310
|
80816
|
|
122439
|
|
1988
|
39934
|
44104
|
4630
|
5267
|
..
|
12646
|
16540
|
83187
|
|
138130
|
|
1989
|
56043
|
59416
|
4356
|
4526
|
..
|
11596
|
11202
|
91096
|
|
161874
|
|
1990
|
69476
|
58200
|
3197
|
4816
|
..
|
13155
|
14293
|
93661
|
|
184239
|
|
1991
|
74868
|
63410
|
2743
|
4113
|
..
|
16603
|
17087
|
103956
|
|
197662
|
|
1992
|
78528
|
78593
|
2899
|
3511
|
..
|
15605
|
12131
|
112739
|
|
217955
|
|
1993
|
82972
|
91927
|
2102
|
2917
|
..
|
17902
|
10600
|
125448
|
|
238542
|
|
1994
|
85617
|
84758
|
2173
|
3047
|
..
|
19435
|
10897
|
120310
|
|
246484
|
|
1995
|
104891
|
81353
|
2186
|
2655
|
..
|
21036
|
10456
|
117686
|
|
268247
|
|
1996
|
110784
|
77096
|
3563
|
2805
|
..
|
20744
|
21020
|
125228
|
|
275533
|
|
1997
|
137053
|
105522
|
6984
|
3502
|
..
|
25316
|
24469
|
165793
|
|
302846
|
|
1998
|
139089
|
138820
|
8004
|
2773
|
..
|
23816
|
34469
|
207882
|
|
346971
|
|
1999
|
136994
|
143230
|
9349
|
3307
|
14597
|
22789
|
29573
|
222845
|
|
359839
|
|
2000
|
146457
|
183388
|
14755
|
2234
|
24470
|
31544
|
18923
|
275314
|
|
421771
|
|
2001
|
163837
|
240949
|
18205
|
2176
|
28018
|
25539
|
20051
|
334938
|
|
498775
|
|
2002
|
175590
|
238254
|
23059
|
3721
|
30358
|
25440
|
30079
|
350911
|
|
526501
|
Table 5. Composition of Gross Foreign
Debt-Currency, 1981-2002 continued
Per Cent of Total
|
|
|
Foreign Currency
|
|
|
|
30 June
|
Australian Dollars
|
U.S. Dollars
|
Pounds Sterling
|
Swiss Francs
|
Euro
|
Japanese Yen
|
Other (a)
|
Total
|
|
Total gross foreign debt
|
|
|
|
|
|
|
|
|
|
|
|
|
1981
|
11.7
|
41.8
|
2.6
|
5.2
|
..
|
5.7
|
13.6
|
68.8
|
|
100.0
|
|
1982
|
10.6
|
46.3
|
2.5
|
6.4
|
..
|
4.1
|
12.3
|
71.6
|
|
100.0
|
|
1983
|
13.1
|
49.0
|
3.0
|
5.7
|
..
|
4.2
|
12.0
|
74.0
|
|
100.0
|
|
1984
|
14.4
|
51.5
|
2.8
|
5.1
|
..
|
3.1
|
10.2
|
72.7
|
|
100.0
|
|
1985
|
16.9
|
49.3
|
2.4
|
5.3
|
..
|
6.5
|
8.9
|
72.5
|
|
100.0
|
|
1986
|
21.1
|
44.9
|
3.0
|
5.3
|
..
|
9.0
|
7.6
|
69.7
|
|
100.0
|
|
1987
|
21.7
|
42.8
|
3.1
|
4.3
|
..
|
8.2
|
7.6
|
66.0
|
|
100.0
|
|
1988
|
28.9
|
31.9
|
3.4
|
3.8
|
..
|
9.2
|
12.0
|
60.2
|
|
100.0
|
|
1989
|
34.6
|
36.7
|
2.7
|
2.8
|
..
|
7.2
|
6.9
|
56.3
|
|
100.0
|
|
1990
|
37.7
|
31.6
|
1.7
|
2.6
|
..
|
7.1
|
7.8
|
50.8
|
|
100.0
|
|
1991
|
37.9
|
32.1
|
1.4
|
2.1
|
..
|
8.4
|
8.6
|
52.6
|
|
100.0
|
|
1992
|
36.0
|
36.1
|
1.3
|
1.6
|
..
|
7.2
|
5.6
|
51.7
|
|
100.0
|
|
1993
|
34.8
|
38.5
|
0.9
|
1.2
|
..
|
7.5
|
4.4
|
52.6
|
|
100.0
|
|
1994
|
34.7
|
34.4
|
0.9
|
1.2
|
..
|
7.9
|
4.4
|
48.8
|
|
100.0
|
|
1995
|
39.1
|
30.3
|
0.8
|
1.0
|
..
|
7.8
|
3.9
|
43.9
|
|
100.0
|
|
1996
|
40.2
|
28.0
|
1.3
|
1.0
|
..
|
7.5
|
7.6
|
45.4
|
|
100.0
|
|
1997
|
45.3
|
34.8
|
2.3
|
1.2
|
..
|
8.4
|
8.1
|
54.7
|
|
100.0
|
|
1998
|
40.1
|
40.0
|
2.3
|
0.8
|
..
|
6.9
|
9.9
|
59.9
|
|
100.0
|
|
1999
|
38.1
|
39.8
|
2.6
|
0.9
|
4.1
|
6.3
|
8.2
|
61.9
|
|
100.0
|
|
2000
|
34.7
|
43.5
|
3.5
|
0.5
|
5.8
|
7.5
|
4.5
|
65.3
|
|
100.0
|
|
2001
|
32.8
|
48.3
|
3.6
|
0.4
|
5.6
|
5.1
|
4.0
|
67.2
|
|
100.0
|
|
2002
|
33.4
|
45.3
|
4.4
|
0.7
|
5.8
|
4.8
|
5.7
|
66.6
|
|
100.0
|
(a) Includes reserve assets
__ Break in series due to introduction of Euro in 1999.
Composition of Gross Foreign Debt by
Country
Concepts
Country refers to the foreign creditor.
International capital markets such as the Eurobond market cannot be
sub-divided by country. Similarly, international
institutions cannot be classified to one country.
Domicile refers to the country of issue
of the loan. For example, if foreigners buy Australian bonds in
Australia, the loan is part of Australia's foreign debt but
domiciled in Australia. Debt domiciled in Australia is typically
denominated in $A. Debt domiciled abroad is actually raised
overseas.
Comments
The most important creditor countries for
Australia in terms of total debt are the United States, the United
Kingdom and Japan, representing 26, 17 and 7 per cent of gross
foreign debt respectively in 2001. 'Other' (principally
international capital markets) stands at around a quarter of all
debt. Almost 60 per cent of debt is owed to residents of OECD
countries.
The United States, the United Kingdom and Japan
have consistently been the most important creditor countries,
though the relative importance of each has changed over time. In
the early 1990s, Japan was the most important creditor country,
followed by the United States and the United Kingdom. Since this
time, however, the United States and the United Kingdom have
increased their relative importance while that of Japan has
declined.
The proportion of borrowing domiciled in
Australia has fallen in recent years from 22 per cent in 1998 to 17
per cent in 2001.
Details: Table 6 and Figure 9.
Table 6. Composition of Gross Foreign
Debt-Country, 1992-2001
$ Million
|
Country:
|
|
Country
Groups:
|
|
Domicile:
|
|
30 June
|
United States
|
Japan
|
United Kingdom
|
Singapore
|
Hong Kong
|
Other Countries
|
Other (a)
|
|
APEC
|
ASEAN
|
EU
|
OECD
|
|
Australia
|
Abroad
|
|
TOTAL
|
|
$
million
|
|
1992
|
33527
|
39592
|
29919
|
6750
|
9810
|
28279
|
70078
|
|
96266
|
7388
|
43906
|
125539
|
|
35971
|
181984
|
|
217955
|
|
1993
|
42305
|
40581
|
29961
|
6571
|
11671
|
29776
|
77677
|
|
108734
|
7380
|
44121
|
135958
|
|
37148
|
201394
|
|
238542
|
|
1994
|
40008
|
36587
|
32209
|
7304
|
13496
|
34972
|
81908
|
|
106997
|
8059
|
50246
|
136080
|
|
41881
|
204603
|
|
246484
|
|
1995
|
40773
|
38864
|
34024
|
6228
|
14223
|
38123
|
96012
|
|
110352
|
7260
|
54711
|
143055
|
|
44636
|
223611
|
|
268247
|
|
1996
|
46615
|
42772
|
28444
|
8099
|
13288
|
38286
|
98029
|
|
119942
|
9234
|
50620
|
148712
|
|
58646
|
216887
|
|
275533
|
|
1997
|
56083
|
42410
|
40460
|
192
|
16236
|
48881
|
98584
|
|
129563
|
9025
|
62788
|
170561
|
|
65914
|
236932
|
|
302846
|
|
1998
|
70870
|
38779
|
50990
|
13166
|
14947
|
45142
|
113077
|
|
145601
|
13964
|
75935
|
195119
|
|
75766
|
271205
|
|
346971
|
|
1999
|
81462
|
31513
|
47704
|
15908
|
14937
|
56383
|
111932
|
|
152422
|
17957
|
73650
|
195558
|
|
71481
|
288358
|
|
359839
|
|
2000
|
103249
|
36299
|
70147
|
16349
|
21347
|
66617
|
107763
|
|
190003
|
18820
|
98432
|
249877
|
|
69569
|
352202
|
|
421771
|
|
2001
|
127189
|
32183
|
86620
|
21262
|
31664
|
75820
|
124037
|
|
225306
|
24565
|
121463
|
294683
|
|
86680
|
412095
|
|
498775
|
|
% of
Total
|
|
1992
|
15.4
|
18.2
|
13.7
|
3.1
|
4.5
|
13.0
|
32.2
|
|
44.2
|
3.4
|
20.1
|
57.6
|
|
16.5
|
83.5
|
|
100.0
|
|
1993
|
17.7
|
17.0
|
12.6
|
2.8
|
4.9
|
12.5
|
32.6
|
|
45.6
|
3.1
|
18.5
|
57.0
|
|
15.6
|
84.4
|
|
100.0
|
|
1994
|
16.2
|
14.8
|
13.1
|
3.0
|
5.5
|
14.2
|
33.2
|
|
43.4
|
3.3
|
20.4
|
55.2
|
|
17.0
|
83.0
|
|
100.0
|
|
1995
|
15.2
|
14.5
|
12.7
|
2.3
|
5.3
|
14.2
|
35.8
|
|
41.1
|
2.7
|
20.4
|
53.3
|
|
16.6
|
83.4
|
|
100.0
|
|
1996
|
16.9
|
15.5
|
10.3
|
2.9
|
4.8
|
13.9
|
35.6
|
|
43.5
|
3.4
|
18.4
|
54.0
|
|
21.3
|
78.7
|
|
100.0
|
|
1997
|
18.5
|
14.0
|
13.4
|
0.1
|
5.4
|
16.1
|
32.6
|
|
42.8
|
3.0
|
20.7
|
56.3
|
|
21.8
|
78.2
|
|
100.0
|
|
1998
|
20.4
|
11.2
|
14.7
|
3.8
|
4.3
|
13.0
|
32.6
|
|
42.0
|
4.0
|
21.9
|
56.2
|
|
21.8
|
78.2
|
|
100.0
|
|
1999
|
22.6
|
8.8
|
13.3
|
4.4
|
4.2
|
15.7
|
31.1
|
|
42.4
|
5.0
|
20.5
|
54.3
|
|
19.9
|
80.1
|
|
100.0
|
|
2000
|
24.5
|
8.6
|
16.6
|
3.9
|
5.1
|
15.8
|
25.6
|
|
45.0
|
4.5
|
23.3
|
59.2
|
|
16.5
|
83.5
|
|
100.0
|
|
2001
|
25.5
|
6.5
|
17.4
|
4.3
|
6.3
|
15.2
|
24.9
|
|
45.2
|
4.9
|
24.4
|
59.1
|
|
17.4
|
82.6
|
|
100.0
|
(a) Includes international institutions and
data, such as international capital markets, not allocated to any
particular country
Composition of Gross Foreign
Debt by Maturity
Concepts
The maturity profile of foreign debt
shows the period left to repayment and thus points to the liquidity
aspects of foreign debt.
Comments
Most loans outstanding are due within a very
short period, leaving Australia vulnerable to fluctuations in the
level of debt. In 2002, 55 per cent of loans were due within a year
and 40 per cent were due within 90 days. About a quarter of all
loans were due later than 5 years.
The level of debt outstanding has grown
significantly larger in relation to GDP. This growth has been
especially marked for loans that have either a very short term or a
very long term to run. Between 1997 and 2002, loans due within 90
days have grown in size from 16 to 30 per cent of GDP while loans
due later than five years have grown from 9 to 18 per cent of
GDP.
Details: Table 7.
Table 7. Composition of Gross Foreign
Debt-Residual Maturity of Debt Outstanding,
1997-2002
|
Contractually due for
repayment:
|
|
1 year or less
|
Greater than
1 year and
up to
5 years
|
Greater than 5 years
|
Unallocated
|
TOTAL
|
|
30 June
|
Less than
or up to
90 days
|
Greater than
90 days
and up to
1 year
|
Total,
1 year
or less
|
|
$
million
|
|
1997
|
87019
|
47459
|
134478
|
66336
|
48303
|
53730
|
302846
|
|
1998
|
116513
|
54973
|
171486
|
76492
|
83953
|
15040
|
346971
|
|
1999
|
111492
|
55599
|
167091
|
83456
|
91466
|
17826
|
359839
|
|
2000
|
138664
|
72768
|
211432
|
112111
|
98229
|
0
|
421771
|
|
2001
|
191196
|
76627
|
267823
|
118395
|
112557
|
0
|
498775
|
|
2002
|
210944
|
76712
|
287656
|
111796
|
127048
|
0
|
526501
|
|
% of Total (excluding
unallocated)
|
|
1997
|
34.9
|
19.1
|
54.0
|
26.6
|
19.4
|
-
|
100.0
|
|
1998
|
35.1
|
16.6
|
51.7
|
23.0
|
25.3
|
-
|
100.0
|
|
1999
|
32.6
|
16.3
|
48.9
|
24.4
|
26.7
|
-
|
100.0
|
|
2000
|
32.9
|
17.3
|
50.1
|
26.6
|
23.3
|
-
|
100.0
|
|
2001
|
38.3
|
15.4
|
53.7
|
23.7
|
22.6
|
-
|
100.0
|
|
2002
|
40.1
|
14.6
|
54.6
|
21.2
|
24.1
|
-
|
100.0
|
|
% of
GDP
|
|
1997
|
16.4
|
9.0
|
25.4
|
12.5
|
9.1
|
10.1
|
57.2
|
|
1998
|
20.8
|
9.8
|
30.6
|
13.6
|
15.0
|
2.7
|
61.8
|
|
1999
|
18.8
|
9.4
|
28.2
|
14.1
|
15.5
|
3.0
|
60.8
|
|
2000
|
22.0
|
11.6
|
33.6
|
17.8
|
15.6
|
0.0
|
67.0
|
|
2001
|
28.4
|
11.4
|
39.8
|
17.6
|
16.7
|
0.0
|
74.2
|
|
2002
|
29.5
|
10.7
|
40.2
|
15.6
|
17.7
|
0.0
|
73.5
|
Components of Increase in Net
Foreign Debt
Concepts
There are three components of an increase in net
foreign debt that are identified in the ABS data:
-
- transactions;
-
- exchange rate movements;
-
- price changes; and
-
- other.
Transactions refers to the net increase in new
borrowings from non-residents where new borrowings is the
difference between drawings and repayments.
Foreign debt data are expressed in Australian
dollars, although they are mostly denominated in foreign
currencies. Debt estimates are converted to Australian dollars at
the exchange rate applying on the last day of the period. Movements
in the exchange rate of the Australian dollar can have a
significant impact on the level of foreign debt expressed in
Australian currency.
Price changes refers mainly to security
revaluations.
Comments
Net new borrowings are often the single largest
contributor to an increase in net foreign debt, though in some
years other factors have also had a significant impact. In 2000-01,
for example, exchange rate movements added almost twice as much as
net new borrowings to the increase in net foreign debt. On several
occasions the effect of exchange rate movements, security
revaluations and other adjustments has been to reduce the level of
net foreign debt below what it would otherwise have been. In
2001-02, net new borrowings rose by 35 billion but net foreign debt
increased by only 17 billion due to the influence of these other
factors.
Details: Table 8 and Figure 10.
Table 8. Components of Increase in Net
Foreign Debt, 1988-89 to 2001-02
$ Million
|
|
Transactions
|
Exchange
rate
variations
|
Price
changes
|
Other
adjustments
|
Total increase
in net
foreign debt
|
|
1988-89
|
14927
|
1184
|
-43
|
1420
|
17488
|
|
1989-90
|
16059
|
-1155
|
-81
|
1999
|
16822
|
|
1990-91
|
6682
|
2464
|
617
|
2583
|
12346
|
|
1991-92
|
13574
|
4401
|
680
|
657
|
19312
|
|
1992-93
|
7859
|
7737
|
1461
|
-2069
|
14988
|
|
1993-94
|
4584
|
-5065
|
-4882
|
-778
|
-6141
|
|
1994-95
|
19423
|
3537
|
-1174
|
-2309
|
19477
|
|
1995-96
|
9952
|
-7731
|
1587
|
-728
|
3080
|
|
1996-97
|
12594
|
1567
|
1546
|
-949
|
14758
|
|
1997-98
|
5135
|
13303
|
2158
|
-1441
|
19155
|
|
1998-99
|
13685
|
-3956
|
-6808
|
-16
|
2905
|
|
1999-00
|
39168
|
11996
|
-2373
|
-1677
|
47114
|
|
2000-01
|
11289
|
22076
|
3537
|
-1234
|
35668
|
|
2001-02
|
35307
|
-14888
|
-3236
|
-200
|
16983
|
Composition of Net Foreign
Investment-Debt and Equities
Concepts
Borrowing is only one kind of capital inflow.
Another is investment in ownership of Australian assets including
shares, property and retained earnings of foreign owned companies.
Trade credit (e.g. money owed by importers) is another category of
capital inflow but is relatively small.
The current account deficit is often regarded as
directly causing our foreign debt. The complexity of the
relationship however, should be noted:
-
- Exchange rate movements have caused large variations in our
foreign debt. As current account deficits influence exchange rates,
there is also an indirect influence of current account deficits on
the level of debt.
-
- The capital account in the Balance of Payments statistics shows
capital inflows and outflows, including lending, borrowing and
other investment. Conceptually, any deficit on the current account
is met by a surplus on the capital account.
-
- As noted above, borrowing is not the only kind of capital
inflow. Some of the current account deficit is funded by other
forms of capital inflow.
Comments
In the early 1980s, well over half of
Australia's net foreign investment was in the form of equities.
From 1983 however, that situation reversed with debt accounting for
51 per cent of net foreign investment in that year and climbing to
80 per cent in 1993. Although it fell to below 75 per cent for most
of the remainder of the 1990s, debt's share of net foreign
investment has since climbed to 86 per cent in 2002.
Changes in the debt/equity mix largely reflect
changes in the method of financing the current account deficit.
While Australia has almost always had a deficit on its current
account, it wasn't until the early 1980s that these deficits were
associated with a build up of debt. Earlier deficits were not
associated with a build up of debt because the deficits were on
average lower and the capital inflow to finance these deficits was
largely long-term equity.
Details: Table 9 and Figure 11.
Table 9. Net Foreign Investment In
Australia-Levels, 1980-2002
|
30 June
|
$ million
|
|
% of net foreign
investment
|
|
% of GDP
|
|
Net
foreign
debt
|
Net
foreign
equity
|
Net
foreign
investment
|
Net
foreign
debt
|
Net
foreign
equity
|
Net
foreign
debt
|
Net
foreign
equity
|
Net
foreign
investment
|
|
1980
|
7923
|
19426
|
27349
|
|
29.0
|
71.0
|
|
6.2
|
15.1
|
21.3
|
|
1981
|
9361
|
24050
|
33411
|
|
28.0
|
72.0
|
|
6.4
|
16.5
|
22.9
|
|
1982
|
18378
|
21114
|
39492
|
|
46.5
|
53.5
|
|
11.0
|
12.6
|
23.6
|
|
1983
|
25169
|
24120
|
49289
|
|
51.1
|
48.9
|
|
13.9
|
13.4
|
27.3
|
|
1984
|
31850
|
24203
|
56053
|
|
56.8
|
43.2
|
|
15.7
|
11.9
|
27.6
|
|
1985
|
53055
|
25875
|
78930
|
|
67.2
|
32.8
|
|
23.6
|
11.5
|
35.1
|
|
1986
|
78396
|
21080
|
99476
|
|
78.8
|
21.2
|
|
31.6
|
8.5
|
40.1
|
|
1987
|
87971
|
34477
|
122448
|
|
71.8
|
28.2
|
|
32.3
|
12.7
|
45.0
|
|
1988
|
96502
|
31260
|
127762
|
|
75.5
|
24.5
|
|
31.1
|
10.1
|
41.1
|
|
1989
|
113989
|
35946
|
149935
|
|
76.0
|
24.0
|
|
32.4
|
10.2
|
42.6
|
|
1990
|
130809
|
41995
|
172803
|
|
75.7
|
24.3
|
|
34.0
|
10.9
|
44.9
|
|
1991
|
143153
|
48328
|
191482
|
|
74.8
|
25.2
|
|
36.0
|
12.1
|
48.1
|
|
1992
|
162466
|
43714
|
206179
|
|
78.8
|
21.2
|
|
39.9
|
10.7
|
50.7
|
|
1993
|
177453
|
43674
|
221127
|
|
80.2
|
19.8
|
|
41.6
|
10.2
|
51.9
|
|
1994
|
171313
|
64785
|
236098
|
|
72.6
|
27.4
|
|
38.3
|
14.5
|
52.8
|
|
1995
|
190790
|
64719
|
255509
|
|
74.7
|
25.3
|
|
40.5
|
13.7
|
54.2
|
|
1996
|
193872
|
81439
|
275311
|
|
70.4
|
29.6
|
|
38.6
|
16.2
|
54.8
|
|
1997
|
208628
|
81528
|
290156
|
|
71.9
|
28.1
|
|
39.4
|
15.4
|
54.8
|
|
1998
|
227782
|
69156
|
296938
|
|
76.7
|
23.3
|
|
40.6
|
12.3
|
52.9
|
|
1999
|
230689
|
90967
|
321655
|
|
71.7
|
28.3
|
|
39.0
|
15.4
|
54.4
|
|
2000
|
277804
|
48700
|
326505
|
|
85.1
|
14.9
|
|
44.2
|
7.7
|
51.9
|
|
2001
|
313472
|
47562
|
361034
|
|
86.8
|
13.2
|
|
46.6
|
7.1
|
53.7
|
|
2002
|
330457
|
55282
|
385739
|
|
85.7
|
14.3
|
|
46.2
|
7.7
|
53.9
|
Endnotes
-
- Robert Dippelsman, 'Australia's Foreign Debt', Current
Issues Paper Number 4, 1989-90, Legislative Research Service,
Parliamentary Library.
- Economic Planning Advisory Council, External Balance and
Economic Growth, Council Paper No. 22, October 1986.
- For many years, a 'Gentlemen's Agreement' existed which brought
borrowings by State semi-governmental authorities under Loan
Council supervision. This meant that all borrowing by the States
was effectively undertaken by the Commonwealth and secured by the
issuance of Commonwealth securities. This agreement, however,
unravelled when the States established central borrowing
authorities (CBAs) to circumvent Loan Council borrowing limits and
began borrowing in their own right by issuing CBA securities. The
Commonwealth responded to this situation in 1984 by suspending the
'Gentlemen's agreement'. (See Richard Webb, 'The Australian Loan
Council', Research Note No. 43, 2001-02, Information and
Research Services, Parliamentary Library.)
- 'Measuring Australia's Foreign Currency Exposure', Balance
of Payments and International Investment Position, ABS
Catalogue No. 5302.0, December Quarter 2001.